2010 has been a good year for Singapore and its workers. The economy grew robustly, and many jobs were created across many sectors. Workers enjoyed good wage settlements and bonuses, and the Central Provident Fund (CPF) rate is going up to 36 per cent. Given this strong rebound, it was right for companies to reward workers fairly. This is the Singapore way, where all of us – managers and workers, employers and unions, Government and the people – stand together in bad times, and share the benefits in good times.
Looking ahead, our prospects are bright, but there are some storm clouds on the horizon. The United States (US) economy is turning a corner. But in Europe, Portugal is now under pressure, after Greece and Ireland. Troubles in these and potentially other European economies will hold back the entire European Union (EU) for some time to come. Japan’s recent tsunami and nuclear crises will have some effect on regional economies. Upheavals in the Middle East have already pushed up energy prices and can potentially destabilise a crucial region of the world, with even graver consequences.
Fortunately, Asia should remain stable and vibrant, boosted by China and India. Singapore’s economy should continue to do well this year. Our Gross Domestic Product (GDP) grew 8.5 per cent in the first quarter. Businesses are seeing high demand, and needing more workers. Hence, the labour market is expected to remain tight. Firms will have to innovate their products, restructure their operations and upgrade their workers to remain competitive.
Inflation has been higher than we wished, but hopefully will moderate later this year. The stronger Singapore dollar will help to mitigate imported inflation. Businesses have responded well to the Government’s efforts to hold down prices of basic essentials. The $3.2 billion “Grow & Share” package will help households cope with the higher cost of living. For most lower and middle-income households, the package should more than make up for the higher cost of living this year.
In the long term, how well Singapore does depends on our policies and politics. We have to implement the right policies – to transform the economy, raise productivity and upgrade our workers. We also need the right politics – to produce governments that pursue sound policies, a stable environment for growth and confidence in Singapore’s long-term prospects.
Singapore has succeeded for many years because good government and good policies have led to better jobs and better lives, which in turn consolidated support for good government and good policies. We have to keep this virtuous cycle going.
We aim to grow not for its own sake, but so as to raise the standards of living of our people across the board. Without growth, we would lack resources to invest in our future, and to help Singaporeans in need. But even with growth, we must make a concerted effort to enable all Singaporeans to benefit: through social programmes like home ownership, education and affordable health care, as well as through special measures like the “Grow & Share” package when the economy does exceptionally well.
We also have Workfare to enhance the income of low-wage workers, and encourage them to make the effort to upgrade themselves. In addition, the Workfare Special Bonus in the recent Budget will give an extra boost to these workers over the next three years, especially older ones. Over time, we will continue improving the Workfare scheme to benefit more workers.
But the most effective way to keep on raising incomes is through upgrading skills and productivity. The tripartite partners are focused on this, and the National Productivity and Continuing Education Council (NPCEC) is making good progress. The Government is investing heavily in Continuous Education and Training (CET), for both rank-and-file workers as well as professionals, managers, executives and technicians (PMETs). Industry associations, businesses, unions and government agencies are working together, sector by sector, to upgrade jobs and workers’ skills. I encourage workers to take up the CET opportunities, master new skills, and benefit from the better-paying jobs that we are creating.
Our politics have looked after the interests of our workers. Politics not just in the sense of parties and elections, but in the sense of Singaporeans understanding what their future depends on, and supporting leaders who will work with them to secure their future. And in the sense of upholding key institutions like the tripartite partners, so that we are resilient when confronted by challenges,
and emerge from crises tougher and more united.
Our unions make a major contribution. The Labour Movement has been a key partner in Singapore’s success over the last five decades. In this 50th Anniversary year of the National Trades Union Congress (NTUC), it is timely for Singaporeans to remember and appreciate the sacrifices and contributions of unions and workers all these years.
This year also marks 50 years of the PAP-NTUC partnership. This unique symbiotic relationship has produced successive PAP Governments that have improved the lives of workers beyond recognition. Workers have had a strong voice in national policy-making, and the NTUC has represented workers more constructively and effectively than in most other countries. Let us continue working together to grow the economy, create more good jobs and secure a brighter future together for many years to come.
I wish all Singaporeans a Happy May Day.
